Basis of Presentation (Tables)

9 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Deferred Revenue, by Arrangement, Disclosure

The components of deferred profit are as follows:

	June 30, 2012		September 30, 2011
	(dollars in thousands)
Deferred revenues	$	12,240	$	29,666
Deferred costs	844		2,058
Deferred profit	$	11,396	$	27,608

Schedule of Inventory, Current

The components of inventories are as follows:

	June 30, 2012		September 30, 2011
	(dollars in thousands)
Purchased parts and raw materials	$	25,432	$	24,925
Work-in-process	4,159		8,257
Finished goods	3,484		3,980
	$	33,075	$	37,162

Property, Plant and Equipment

The following is a summary of property, plant and equipment:

	June 30, 2012			September 30, 2011
	(dollars in thousands)
Land, building and leasehold improvements	$	10,529		$	10,636
Equipment and machinery	6,468			6,003
Furniture and fixtures	5,273			5,434
	22,270			22,073
Accumulated depreciation and amortization	(10,290		)	(9,393		)
	$	11,980		$	12,680

Schedule of Goodwill

The following is a summary of activity in goodwill:

	Nine Months Ended
	June 30, 2012
	(dollars in thousands)
Beginning balance	$	13,313
Goodwill recognized due to acquisition	—
Change in foreign exchange rates	(307		)
Ending balance	$	13,006

Schedule of Finite-Lived Intangible Assets

The following is a summary of intangibles:

	Useful Life	June 30, 2012			September 30, 2011
		(dollars in thousands)
Non-compete agreements	4-8 years	$	1,053		$	1,066
Customer lists	10 years	810			876
Technology	5-10 years	2,306			2,436
Licenses	—	—			500
In-process research and development	(1)	1,600			1,600
Other	2-10 years	318			97
		6,087			6,575
Accumulated amortization		(1,866		)	(1,554		)
		$	4,221		$	5,021

(1) The in-process research and development will be amortized over its useful life when it has reached technological feasibility.

Schedule of Product Warranty Liability

The following is a summary of activity in accrued warranty expense:

	Nine Months Ended June 30,
	2012			2011
	(dollars in thousands)
Beginning balance	$	2,265		$	1,843
Warranty expenditures	(1,260		)	(847		)
Warranty expense	2,266			2,061
Ending balance	$	3,271		$	3,057

Effects of share-based compensation expense

Share-based compensation expense reduced the Company’s results of operations by the following amounts:

	Three Months Ended June 30,						Nine Months Ended June 30,
	2012			2011			2012			2011
	(dollars in thousands						(dollars in thousands)
Effect on income before income taxes (1)	$	(438	)	$	(356	)	$	(1,341	)	$	(1,099	)
Effect on income taxes	63			105			194			383
Effect on net income	$	(375	)	$	(251	)	$	(1,147	)	$	(716	)

(1) Stock-based compensation expense is included in selling, general and administrative expenses.

Schedule of Share-based Compensation, Stock Options, Activity

Stock option transactions and the options outstanding are summarized as follows:

	Nine Months Ended June 30,
	2012					2011
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding at beginning of period	611,384			$	10.02	691,403			$	7.03
Granted	285,400			7.98		102,000			6.44
Exercised	(600		)	5.33		(25,608		)	6.04
Forfeited	(4,078		)	9.46		(6,525		)	5.55
Outstanding at end of period	892,106			$	9.37	761,270			$	6.99
Exercisable at end of period	377,756			$	9.16	448,081			$	7.23
Weighted average fair value of options granted during the period	$	4.95				$	3.97

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of options was estimated at the grant date using the Black-Scholes option pricing model with the following assumptions:

	Nine Months Ended June 30,
	2012	2011
Risk free interest rate	1.12%	1.69%
Expected life	6 years	6 years
Dividend rate	0%	0%
Volatility	70%	70%

Schedule of Share-based Compensation, Restricted Stock Activity

Restricted stock transactions and awards outstanding are summarized as follows:

	Nine Months Ended June 30,
	2012				2011
	Awards		Weighted Average Grant Date Fair Value		Awards		Weighted Average Grant Date Fair Value
Beginning Outstanding	120,970		$	9.42	127,751		$	6.36
Awarded	60,600		7.98		35,517		17.28
Released	(47,014	)	8.53		(37,376	)	6.27
Forfeited	(2,000	)	7.22		—		—
Ending Outstanding	132,556		$	9.11	125,892		$	9.47

Research and Development Expense

The table below shows gross research and development expenses and grants earned:

	Three Months Ended						Nine Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
	(dollars in thousands)						(dollars in thousands)
Research and development	$	3,902		$	2,187		$	10,289		$	4,330
Grants earned	(208		)	(252		)	(543		)	(613		)
Net research and development	$	3,694		$	1,935		$	9,746		$	3,717